Hungary Economic Sentiment June 2016

Hungary:

June 27, 2016

The GKI-Erste economic sentiment indicator worsened in June, dropping from minus 3.2 points in May to minus 3.7 points. The result was driven by a deterioration in both business and consumer sentiment.

Business sentiment tallied 1.7 points in June, coming in below May’s 2.3 reading and marking the lowest print in nearly two years. According to GKI, in June, sentiment fell across the trade and services sectors, while it strengthened in the industry and construction sectors.

Meanwhile, consumer confidence moderated from May’s minus 18.9 points to minus 19.2 points in June. According to GKI, the decrease was driven by consumers becoming more pessimistic about their savings capacity and their ability to purchase large-ticket items. Conversely, they were more optimistic regarding the general economic outlook in the next 12 months. Households’ opinions regarding their financial situations in the next year did not change compared to May.

FocusEconomics panelists expect total consumption to expand 2.8% in 2016, which is unchanged from last month’s projection. For 2017, the panel expects total consumption to grow 2.6%.
Panelists expect fixed investment to decrease 0.9% in 2016, which is unchanged over last month’s estimate. In 2017, the panel sees investment expanding 3.3%.

According to revised data released by the Statistical Institute (KSH) on 13 February, industrial output rose a working-day adjusted 4.5% year-on-year in December, accelerating from the 3.6% expansion observed in November.